The highest risk bond to an investor

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Reference no: EM131049146

The highest risk bond to an investor, looking at the bonds issued by one company, are ___ bonds

a. Debentures

b. Subordinated debentures

c. For the same company, all bonds would be equally risky

d. Mortgage bonds

After a bond is sold, the going rate of interest increases. This will have the effect of ___ the present value of remaining interest payments, and _____ the present value of the face value to be received at maturity

a. Decrease, decrease

b. Increase, decrease

c. Decrease, increase

d. Increase, increase

Bond financing is best characterized as _______ amortization borrowing.

a. Full

b. Partial

c. Zero

d. Negative

Reference no: EM131049146

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